NBC seals Sparrowhawk acquisition

NBC Universal has confirmed its acquisition of Hallmark International owner, Sparrowhawk Media, for a reported $350m (£174m), as exclusively revealed by Broadcastearlier this year. [ALL]

NBC Universal has confirmed its acquisition of Hallmark International owner, Sparrowhawk Media, for a reported $350m (£174m), as exclusively revealed by Broadcastearlier this year.

Under the terms of the agreement, NBC has acquired the international (non-US) Hallmark Channels from Providence Equity Partners, 3i and management shareholders. They include chairman David Elstein, David Hulbert, Tim Richards and Keith Porritt.

Elstein's venture capitalist-backed purchase of the Hallmark Channels international business in April 2005 was for £127m.

Hallmark's international channel broadcasts across about 152 countries, which would help NBC's efforts to expand internationally.

The owners of Sparrowhawk will sell all of the company's shares to NBC, which will take ownership of Hallmark International channels, Movies 24, Diva TV and Sparrowhawk's KidsCo channels.

The Sparrowhawk channels will be added to NBC's portfolio, which already includes Sci Fi, 13 ^thStreet, Studio Universal and Universal Channel brands. NBC will have more than 30 channels in total, with plans to expand to more than 50 over the next two to three years.

NBC will also own Sparrowhawks Denver-based broadcast facility and the rights to over 580 titles in the Sparrowhawk International Library.

Sparrowhawk chairman Elstein, who is expected to quit, said: 'We have not been looking for a sale, but the opportunity of joining our assets with those of NBC Universal is unique, and offers our staff, customers and suppliers the prospect of a yet more exciting and expansive future. We wish the combined venture every success under its new ownership and congratulate all our staff for demonstrating, with their hard work, the high value of the Sparrowhawk assets'.

President and chief executive officer NBC Universal Jeff Zucker, added: 'This is a perfect strategic investment for NBC Universal and illustrates our commitment to growing our company internationally. It is another step, among several we will take in the next year, to transform our entire portfolio, with an eye toward high-growth areas.'

The business will be headed up by RomaKhanna , NBC president of global networks and digital initiatives.